Helsinki: Nokia said on Friday it expects global market share in the third quarter to be lower than in the second quarter because of aggressive pricing by competitors. Its share price tumbled 11 per cent.
The world's top handset maker gave no figures, but in July had predicted "its mobile device market share in the third quarter 2008 to be approximately at the same level sequentially" as during the second quarter.
In April through June, Nokia sold 122 million phones - with a global market share of 40 per cent.
The company's shares plunged 11 per cent to $20.24 yesterday on the Helsinki Stock Exchange.
Nokia said the reason for an expected fall in market share included "Nokia's tactical decision to not meet certain aggressive pricing of some competitors."
It also said it was hit by "the overall market competition, including the entry markets, and the temporary impact of a slower ramp-up of a mid-range Nokia device."
The company said it would continue to be guided by a policy that is "sustainably profitable in the longer term."
Outlook rosy
But it was upbeat about the rest of the year, saying it will continue to target an increase in "its market share in mobile devices for the full year 2008." It gave no figures.
Nokia said that although economic gloom would also affect global phones phone sales, it "continues to expect industry mobile device volumes in 2008 to grow 10 per cent or more from the approximately 1.14 billion units Nokia estimated for 2007."
Although Nokia has reached its much long-stated goal of 40 per cent market share, it has vouched to continue to aim for higher growth.
But the company's share price has plunged about 40 per cent this year amid concerns the mobile industry would suffer as the credit crunch and inflation take their toll on economic growth and consumers' spending power.
